Reserve Bank Cancels the Licence of Suvidha Mahila Nagrik Sahakari Bank Maryadit, Hoshangabad (M.P)

Case Brief

The Reserve Bank of India cancelled the licence of Suvidha Mahila Nagrik Sahakari Bank Maryadit, Hoshangabad (M.P) after determining that the bank had ceased to be solvent, that repeated revival efforts had failed, and that continued uncertainty was harming depositors. The release notes that statutory inspections indicated impairment and later deterioration in the bank's financial condition; RBI had earlier issued directions under Section 35A of the Banking Regulation Act, 1949 (as applicable to co-operative societies) restricting operations from October 5, 2004. RBI also issued a show-cause notice on December 24, 2007, but found no viable revival plan and concluded that revival was remote. Following cancellation, the Registrar of Co-operative Societies, Madhya Pradesh was asked to start winding up and appoint a liquidator, and the bank is prohibited from carrying on banking business, including acceptance and repayment of deposits.